Coastal States Gas Producing Co.
List of Deals
- 1963 Coastal States Gas Producing Company: first mortgage 5% bonds, series A, due 1983
- 1965 Coastal States Gas Producing Company: first mortgage 5% bonds, series B, due 1985
- 1969 Coastal States Gas Producing Company: first mortgage 7 5/8% bonds series D, due 1989
- 1971 Coastal States Gas Producing Company: first mortgage 7 3/4% bonds, series E, due 1991
- 1972 Coastal States Gas Producing Company: 8 1/8% notes due December 15, 1977-1987
Coastal States Gas Producing Company was incorporated in Delaware in November 1955 as Coastal States Oil & Gas Company. In February 1956 the name Coastal States Gas Producing Company was adopted.
In June 1958 the company reported net income of approximately $1 million, as compared to $680,000 the previous year. The total assets increased from slightly less than $12 million in 1957 to $16.5 million in 1958. In 1958 the company operated twenty-four gas-gathering systems and had five others under construction, up from nineteen in 1957. These systems had a combined daily capacity of 586.5 million cubit feet. In 1958 the company also had an interest in 207 gross wells.
Coastal States common stock split three-for-one in 1961. The company reported that the reason for this was to broaden the market for their common stock.
In May 1962 Coastal States announced new gas sales contracts with Tennessee Gas Transmission Company, Dow Chemical, and Tenneco Chemical, which were estimated to 110 million cubic feet by January 1, 1964. In October 1962 the company was awarded twenty-year contracts for the intrastate sale of gas to Austin, Texas, and to the Lower Colorado River Authority for use in generating electricity.
The company acquired a 100 percent interest in Alamo Gas Supply Company, which was providing natural gas to San Antonio, in September 1963. Coastal States had previously owned 25 percent. In October 1963 Coastal States completed the Texas City Delivery Line, a $7 million extension of the company's Lo-Vaca gas-gathering system. In August 1963 Coastal States concluded an agreement with the gas distributor in the City of Austin to provide all of the city's consumer gas requirements for a period of twenty years commencing April 1967.
In 1964 Coastal States purchased all of the common stock of Peake Petroleum Company, a subsidiary of Chesapeake & Ohio Railway. Peake had an interest in 120 gas wells and 106 oil wells in West Virginia, Oklahoma, Michigan, Illinois, and Ohio. With this purchase, Coastal States also acquired 200,000 acres owned by Peake, which it hoped to develop. Also in 1964 Coastal States entered into a twenty-year contract with Central Power and Light of Corpus Christi to furnish up to 150,000 million cubic feet of gas daily. By 1964 Coastal States was earning higher revenue and net income. In fiscal year 1964 sales rose to $56 million from $43.2 million in 1963. Net income also rose from $8.9 million to $12 million.
In January 1965 the company purchased the gas-gathering and transmission systems of the Texas Gas Utilities division of Associated Oil & Gas Company, and in July of that year the company bought the gas-gathering, transmission, and distribution operations of the Southern Coast Corporation for approximately $2 million.
In July 1967 Coastal States was given the contract to supply the total natural gas needs of Corpus Christie, Texas, for the next 18 ½ years. Coastal States declared a 10 percent stock dividend in November 1967, the first dividend of any kind in the company's twelve-year history. The following year, the company approved a 100 percent stock dividend. In July 1968 Coastal States acquired Rio Grande Valley Gas Company for preferred stock in a deal valued at $17.5 million.
Sales for Coastal States rose to a record $247.1 million in 1968, with earnings of $24.3 million. In 1971 sales and net income continued to break records for the company when they reported income of $36.7 million on sales of $404.1 million.
In December 1972 the stockholders of both Colorado Interstate and Coastal States approved the combination of their two companies to be formed into a new parent, Coastal States Gas Corporation, effective January 2, 1973.